Our Express Merchant Funding service is a great solution for businesses who process the bulk of their transactions in the evening, such as restaurants, and businesses on the west coast.

It’s also beneficial for merchants with heavy weekend sales volume because they will get their deposit on Monday instead of Tuesday. This makes it easier for them to meet business expenses like payroll, purchasing inventory, and more.

Finally, keep in mind that not all next day funding programs are created equal. Some processors require that merchants have an account at their designated bank. That’s not the case with us because of the proprietary back-end processing platform, so we can help merchants batch out later and get their deposits sooner.

For restaurants, dry cleaners and other businesses that need their cash quickly to keep their business running smoothly, next day funding is for you.  Our next day funding is different from competitors. The two features below differentiate our next day funding from the rest of credit card processors.

Feature 1

We have the latest time to settle your batch in the industry for your next day funding! Our 11 pm eastern, midnight pacific time cutoff time makes it convenient for most merchants.

Feature 2

We deposit real money, not just a memo post. The money is available to you the next morning; thus, next day funding.

Many merchant services companies will tell you they have next day funding, but what they really have is a memo post of your funds to your bank account. A memo post is used to temporarily recorded a credit or charge to the account that updates your bank account balance in “batch posting”. The transactions will permanently post to your account, generally later that evening or the next business day.

These two features, along with NO Annual Fee and NO PCI compliance fees  are what makes our company unique and award winning. We have the latest cutoff time for real money deposits, not just a memo post of funds.

1. Cutoff time is 11 PM Eastern
2. Real money deposited (not just a memo posted) by the next morning

Next Day Funding Schedule

Batch Day	Batch Out Time	Day You Receive It
Monday	by 11:00 PM	Tuesday
Tuesday	by 11:00 PM	Wednesday
Wednesday	by 11:00 PM	Thursday
Thursday	by 11:00 PM	Friday
Friday	by 11:00 PM	Monday
Saturday	by 11:00 PM	Monday
Sunday	by 11:00 PM	Monday

Important Note: When the Federal Reserve is closed (Saturday, Sunday and Holidays) money doesn’t move.  All Batch Out Times are Eastern Timezone.

Next Day Funding

PCI compliance fees. More and more merchants are being charged unnecessary Payment Card Industry (PCI) Data Security Standard (DSS) fees.  These fees range from $99 to $149 per year.  What do these fees get you the merchant? Absolutely nothing!

One national processing company charges businesses $99 per year for PCI compliance fees, but said the merchant would receive up to $50,000 in insurance should there be a PCI breach on their system.  Reading the fine print, it required the merchant to complete the Self Assessment Questionnaire (SAQ) and have a successful network scan completed on their system.  A network scan tests your system end to end.  Let me explain.

PCI Compliance Fees

PCI requires all Internet-facing IP addresses to be scanned for vulnerabilities.  This includes your server on the internet, if applicable.  Let’s say you have a business.  That business could be brick and mortar, an internet server where you sell products and services, or a combination of both.  From your home, you access the database where your payment processing is made.  You want to find out how much money you made today.  Since you would be accessing the database from your home and signing in with your credentials, not only does the business or Internet server need to be scanned, so does your home IP address.

Many people think their internet address is 192.168.xxx.xxx.  It is not.  That is a subnet for your private network for the router you purchased.  For any of us to access the internet, we must have a unique IP address. Don’t know your internet IP address?  This site and many others will give you your IP address, along with the information you are releasing to the world about yourself.

Another myth many people believe is when they log into a website that it is secure because the password is masked with asterisks.  Not true.  Your password is passed without encryption, in the clear. Unless there is a secure hypertext transfer protocol (https:) AND the secure socket layer is provided by a reputable company, then your user name and password could be compromised.  When you go to your bank’s website or a well know reputable provider like Amazon, you will notice a lock on your browser.  Double click the lock and click View Certificate.  In Amazon’s case, it uses Verisign.  Verisign, Comodo and many others have strong reputations in securing websites.

As you can see, logging in from your home to another location requires security.  At your business, your credit card processing software or equipment must be segregated from the rest of your network.  If you don’t, you stand to have your data compromised.  What’s the cost of a compromise?  You could receive fines of $25,000 per occurance.  You also can be charged the fees of the banks who issued the compromised consumer debit/credit cards a reissuing fee.  Your company’s reputation would be severely damaged.

So, what can you do about PCI Compliance Fees?

PCI Compliance fees are on top of what you would pay for network scans, audits and assessments.  PCI Compliance fees provide the processor additional revenue, but provide nothing of value in return.  Look for a reputable merchant services company that doesn’t charge a PCI Compliance fee.  Help them understand your business.  In turn, they should help you determine the resources you need to protect yourself, your business and your company’s reputation.  But don’t pay credit card PCI Compliance fees!

We’ve seen in the past year where large merchants and even merchant processing companies have been hacked.  It has been costly to them in monetary losses, reputation and potentially impending Congressional oversight.

If you use a dial up terminal you should in good shape.  You still need to complete SAQ B.  More information is on our PCI compliance page.  But dial up terminals, if they themselves are compliant, should only require the SAQ B.

In conclusion, ALL merchants must be PCI compliant. Merchant incur the fees to become PCI compliant with expenses such as network scans and assessments or audits if they are necessary.  Paying your merchant services provider a PCI compliance fee, unless they are adding value in your PCI compliance, is just throwing your money away.

For more information about PCI Compliance or merchant services, call us today at 817.857.3557 or toll free 877.577.3779.

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PCI Compliance Fees – Don’t Pay Them!

Virtual Terminals

Easier Than Online Banking!

Online virtual terminals are extremely versatile.  The gateway securely retains your credit card information.   If you are keeping transactional data in a filing cabinet or drawer, you are risking your customer’s card and your good name.

If you are storing paper transactional data, you may not be PCI Compliant and you risk stiff financial penalties if this data is compromised.

• Key in transactions after using an imprinter.  Securely store the card holder information on the gateway.
• Attach a mag stripe reader and get swiped rates.
• Use the same gateway for Smart Phone/iPhone transactions.
• Add an Inventory Management System.
• Add a Point of Sale (POS) System.
• Add our QuickBooks plugin to import your transactions instead of double keying.

We setup a time for training.  It is so easy to use, most training lasts five to ten minutes for the online terminal.  We spend additional time with you explaining the Do’s and Don’ts of credit card processing, along with an overview of PCI Compliance.

This is the most cost effective and versatile system the market has to offer.  It is scalable.  It can work for a business of one or a call center.  There are many add-ons and plug-ins not discussed here that can really help the efficiency of any size organization.

Call us at 877.577.3779, option 1 for more information.

Credit Card Virtual Terminal

Social Media Seminar, Friday, September 20, 2013

Most small business cannot afford to pay $200 or more per month to build their online presence through social media. It would take you hundreds of hours to learn what you will take away from this seven hour hands-on social media training. Download the brochure.

Why is this seminar important? In this new economy, social media is available 24/7/365. It’s where your customers are looking for you and learn about you. It’s why Amazon is king and Borders falls way behind. It’s the new way to market. It’s all about growing your business. Social Media is not about the technology. It’s all about people and processes.

Social media is more than just doing tweets, writing on a person’s wall or connecting with 1000s of other business people. It’s a strategy.

When you analyze the most common traditional marketing from bulletin boards to direct mail to newspaper ads, it could cost a business thousands of dollars per month. Social media costs your time. It’s available 24/7 and pulls people to you, rather than traditional marketing that relies on interrupts to the brain.

You will gain an understanding of the power in each of these online tools. You will learn how to integrate the tools by posting one time, while having your message go to many sites. During this seven-hour seminar, you will better understand how to use the power of Twitter, Pinterest, Facebook Business, Linked-In, YouTube, Blogs and much more! Lunch is included.

Social Media helps find jobs, connect people, and provides a medium to share and discuss information. Business owners trying to use traditional marketing approaches with social media will fail.

Due to personalized attention and research, registration is limited to 25 and there will be no cash refunds. Lunch is included.

The price for this class is $249. If you are a graduate of New Quest, our customer, or a Knowledge for Success Partner/Sponsor, the cost is $149. Held at the La Mancha Business Center, 2701 W Berry St, Fort Worth TX 76109, Building #1.  You MUST BE a current customer of DFW Card, Merchant Services Inc or Rebel Without Applause to take advantage of the $25 price.

Special for previous attendees.  If you previously attended the Social Media Seminar and would like to attend again, the cost is $99.

This seminar helps fund entrepreneurial businesses in North Texas by giving back a portion of all proceeds to the non-profit business assistance center, Knowledge for Success.

Social Media Seminar

No Termination Fee, No PCI Compliance Fees, No Annual Fee, No Hidden Fees. That’s right! No unnecessary fees. (For qualified companies that already take credit cards and process at least $10,000 per month.)

All of our credit card processing equipment is PCI Compliant and open standards (Nothing proprietary.  We want your business, not your anger).  Here are a few of our differentiators:

1. No Termination Fee.  This is a low risk decision for you since we don’t bind you with long credit card processing contracts and termination fees.  To avoid the no termination fee, we ask that you give us 45 days to meet or exceed your requirements.  That’s fair.
2. No PCI Fees. However, if you are not PCI compliant within 30 days, we will charge you a monthly fee for NON COMPLIANCE. PCI Compliance is very important. The major card types require that you become compliant. For dial up merchants, the questionnaire takes only a few minutes to complete online.
3. No Annual Fee. We are all in business to make money.  But let’s make money honestly, for the work we do and the credit card processing service we provide.  We don’t pad our accounts with unnecessary annual fees.
4. No Hidden Fees.  Integrity and honesty.  We explain everything, upfront.  No business owner likes surprises.
5. Inexpensive, credit card terminals that are fully compliant.  If you already have credit card processing terminal, we can reprogram it for you.
6. FREE virtual terminal setup.  If you are keying most of your transactions, you don’t need hardware.
7. FREE portal access for your merchant account.  Check your credit card processing from almost anywhere in the world using a web browser.  Graphs, charts and data are available online.  Data is exportable to Excel or comma delimited (CSV).
8. FREE credit card processing terminal placement program for qualifying merchants. We program it and ship it to you.
9. FAST! We’ll have your merchant account number in less than five minutes! (Provided of course you give us accurate data).

Call us today at 877.577.3779, option 1.

Credit Card Processing

The Ultimate In Secure, Real-Time Credit Card Transaction Processing

Call us today at 877.577.3779 to setup your secure gateway.

We help merchants realize unlimited business opportunities and profits with the continued expansion of the Internet marketplace, enabling merchants with an Internet presence to process online credit card transactions automatically and in real-time, using a secure Web page accessed directly from the merchant’s existing Web site.

Added Convenience

The latest, most sophisticated digital encryption is used to transmit information between the customer’s browser and the eProcessingNetwork Secure Credit Card Transaction Processing Server. Direct communication lines are used to obtain real-time authorizations from the processor. Plus, merchants get the added convenience of having funds directly deposited to their bank account.

Added Security

Secure order forms are tailored to match the design of the merchant’s Web pages and automatic e-mail messages are sent to the merchant, as well as the cardholder, confirming each transaction. Real-time communication between eProcessingNetwork and the processor helps ensure the accuracy and validity of each transaction.

Added Fraud Protection

Address Verification and Card Verification Value (CVV2) Services are performed to reduce the chance of fraud and charge-backs. Open batches are automatically closed daily so merchants no longer need to purchase additional software to reconcile their transactions. Merchants can limit the number of times a customer can attempt a transaction, and can configure their eProcessingNetwork account to accept transactions only if the customers’ AVS and CVV2 data was entered correctly.

Simple and Secure

Integrating eProcessingNetworks credit card transaction processing service is easy to do. Here’s how it works:

When the merchant’s customer is ready to buy, they are linked to the eProcessingNetwork Secure Payment Information Capture Form on the eProcessingNetwork Secure Transaction Processing Server. This page matches the design of the merchant’s Web page, and the customer is given visual clues of the forms Secure Socket Layer (SSL) encryption.

Once the customer submits payment information, the eProcessingNetwork Transaction Processing Server processes the transaction and gives the customer immediate transaction status – approval, decline or other status indication.

If the processor approves the transaction, an e-mail message containing the customer’s mailing information and order summary is sent to both merchant and customer. Credit card information is never e-mailed, sold or distributed to third parties.

The entire process is simple and convenient to use. eProcessingNetwork offers reliable and secure credit card transaction processing services and professional support every step of the way.

Secure Gateways

Blackberry Payment Device

Merchants can process transactions in the field where sales opportunities exist, without having to worry about PABP/PADSS requirements.

By using the native browser on mobile devices, merchants have the ability to process transactions in the field where sales opportunities exist, without having to worry about PABP/PADSS requirements.

Smart Phone Processing is simple to use. It has proven to be the ultimate solution not only for merchants who do not want to carry multiple devices, but also for fleets who need centralized control and reporting of the processing through their devices.

Get a real time approval code from your customer’s issuing bank using this application. If your selling higher ticket items, you want to make sure you get paid before you give up the goods. We have merchant account customers that sell expensive pedigree dogs, manage limousine and taxi services, and sell books at speaking events. These customers know that getting confirmation of credit card payment prevents hours of issues and lost revenue down stream.

As with all services available, merchants can mix-and-match any combination of solutions through a single merchant account.

Multiple Processing Options — Use with Your Existing Cell Phone or PDA (requires a card reader and printer attached via bluetooth for swiped rates or manually key in card numbers) or Utilize a Dedicated Wireless Terminal.

Process Payments Away from the Traditional Office — in the Car, at a Trade Show, at a Customer’s Home, or Wherever the Need Arises

Transactions Stored Online, Not On Your Phone. If Phone is Lost or Stolen, Transactions are Secure.

Got an iPhone. See our iPhone credit card processing application.

Your merchant account is Visa MasterCard Interchange pricing. Don’t get stuck in three or four tiered pricing where you don’t know when you mid-qualify or non-qualify. When you establish an account with Merchant Services Inc, there are no surprises, no hidden fees. All of your transaction fees are clearly outlined and posted online.

For more information on merchant accounts and credit card machines, call us today at 817.857.3557 or toll free 877.577.3779.

Smart Phone Processing

FANF Fixed Acquirer Network Fee

Visa introduced the FANF Fixed Acquirer Network Fee in April 2012. The FANF Fixed Acquirer Network Fee is a monthly fee that is assessed on a merchant taxpayer basis and includes all merchant accounts owned by a business for credit card transaction processing. This fee can be quite confusing to figure out, so we will do our best to explain how it is calculated. The amount of the FANF Fixed Acquirer Network Fee depends on the merchant category code (MCC), the mix of card present and card not present volume, and the number of locations the business operates. The FANF Fixed Acquirer Network Fee can vary from month to month for each merchant depending on these factors. For many merchants who process all of their transactions in a card present environment, the amount of the FANF Fixed Acquirer Network Fee is based on the number of locations owned by the business, as shown in Table 1b below. (Please note that if merchants have any card not present volume for debit and credit card processing, they will incur additional FANF Fixed Acquirer Network Fee fees, which we will explain later.)

Table 1b: Card Present (excluding High Volume MCCs)

However, certain types of merchants are considered “High Volume MCCs” by Visa and have a different set of rates shown in Table 1a below. High Volume MCCs include Airlines (3000-3299, 4511), Auto Rental (3300-3499, 7512), Lodging (3500-3999, 7011), Warehouse Stores and Wholesale Clubs (5200, 5300), Discount Stores (5310), Department Stores (5311), Supermarkets (5411), Car/Truck Dealers (5511), Auto Tire Stores (5532), Petroleum (5541, 5542), Family Clothing Stores (5651), Furniture Stores (5712), Electronic Stores (5732), Drugstores (5912), Theatres (7832) and others.

Table 1a: Card Present High Volume MCCs

Now comes the really tricky part, card not present volume. The FANF Fixed Acquirer Network Fee for card not present volume is calculated separately in Table 2, in addition to the fee from Table 1a or 1b. The FANF Fixed Acquirer Network Fee fee for card not present volume is based on monthly volume, as shown in Table 2 below. This table is also used to determine the FANF Fixed Acquirer Network Fee for fast food restaurants (MCC 5814) and merchant aggregators.

Table 2: Card Not Present, Fast Food Restaurants, Merchant Aggregators

As a reminder, the FANF Fixed Acquirer Network Fee is calculated per merchant taxpayer and includes all merchant accounts owned by that taxpayer. A taxpayer is defined as a legal business entity with its own federal taxpayer identification number (TIN). This can make it even more confusing, so hopefully the following examples will help you understand it.

Example #1: Retail business with one merchant account with 100% card present volume

FANF Fixed Acquirer Network Fee is determined using Table 1b, Tier 1 = $2.00/month.

Example #2: E-commerce business

FANF Fixed Acquirer Network Fee is determined using Table 2, Tier 6 = $15.00/month.

Example #3: Restaurant with one location with 80% card present volume

The FANF Fixed Acquirer Network Fee is determined in two steps. The card present volume is determined using Table 1b, Tier 1 ($2.00). The card not present volume is based on Table 2, Tier 4 ($7.00). So, the total FANF Fixed Acquirer Network Fee for this account would be $9.00 per month.

Example #4: Retail business with multiple locations and channels

The card present part of the business is based on Table 1b, Tier 2 (2 locations), so each location is assessed $2.00/month. The card not present part combines the volume from Location B and the e-commerce website. The total of $7,500 in card not present volume results in Table 2, Tier 5, or $9.00 per month. While the FANF Fixed Acquirer Network Fee is calculated per taxpayer across all of the businesses’ merchant accounts, Merchant Services Inc bill the appropriate amount to each merchant account. In the case of Table 2 fees, Merchant Services Inc will prorate the fee across each account by volume. In Example #4, each account would be billed as follows:

For more information, call us today at 877.577.3779 or fill out our simple online form.

Clearent, a major partner with Merchant Services Inc, wrote this article and graciously shared it with us. Reprinted with permission.

FANF Fixed Acquirer Network Fee

American Express (AMEX) has a three party system.  AMEX approves its own transactions.  They issue their own credit cards.

Visa and MasterCard have a four party system.  They do not issue any credit cards.  Rather, they license their payment brands to Issuers and Acquirers.   Issuing banks are the entities that provide you, the consumer, with the credit cards in your pocket.  Acquirers are the entities that process the transactions.  We are part of the acquiring side.  As a registered Independent Sales Organization (ISO) of Visa and MasterCard, we pay them thousands of dollars a year for the privilege of using those brands.

Transaction Process

As shown in the Transaction Process above, unlike the three party system, Visa and MasterCard do not approve transactions.  The bank that issued your credit card approves the transaction.  The issuing bank takes on the risk that you as the consumer will pay them back for the items you purchase.  In turn, the issuing bank get paid Interchange.

The cost of interchange depends on the card type that is presented.  A debit card, which is tied to your checking account, is a low risk, low cost interchange.  If you don’t have money in your checking account, the transaction is declined.

Corporate, government and foreign credit cards are high risk.  They have the highest interchange rates.  You may ask why.  Simply, if someone from a foreign country buys an item here but refuses to pay for it later, perhaps because of a dispute, it is very difficult, sometimes almost impossible to get that money back.  Also, people in corporations and government make purchases that are not authorized by higher management.  If they quit or are terminated, these entities will often dispute the charges as unauthorized.  This makes these three card types high risk.

Interchange is not voodoo or secrative.  Interchange is clearly posted and updated on the internet (Visa Interchange rates and  MasterCard’s Interchange Rates).

Why is Interchange Important?

According to the Board of Governors of the Federal Reserve System in their June 2009 Report to the Congress on the Profitability of Credit Card Operations of Depository Institutions, there are 565 million general purpose credit cards labeled Visa or MasterCard.  There are another 111 million general purpose credit cards provided by American Express and Discover.

The population of the United States approximates 300 million ( 307,047,313).  That means every infant, child, adult or infirmed, would possess 2.34 credit cards per person.

Five years ago, the average male, 35 years of age an under, carried less than $20 cash.  They used their debit cards.  These males are now 40 and have taught their children by using debit cards instead of cash.  It is estimated that the vast majority of transactions between $5 and $60 are paid with debit cards.

In our article Debit Card use Surpasses Credit Cards, for the first time in Visa’s history, debit card use surpassed Credit Cards in the fourth quarter 2008.  On page 14 of Visa’s Form 8-K, filed on April 29, 2009, U.S. debit card volume was $206 billion, versus a credit card volume of $203 billion.  The growth of debit cards was up 5.5%, while credit cards were down 6.9%.

So, what does all this mean?  It means the market, specifically consumers, have chosen plastic over cash and checks to pay for their purchases.  They have voted on it with over 600 million credit cards issued to a population of 300 million.

Efficiency and Total Costs

Businesses that accept only cash payments do not have costs associated with credit card processing.  However, they often lose more money than they would have through credit card processing because of employee skimming and theft.  A cash only business is serious temptation to an employee earning minimum wage.

When you take into account your bank charges and fees, trips to the bank to deposit cash and checks, and ancillary overhead such as bookkeeping, ACH rejects and cash management, the cost to a merchant for a grocery store transaction of $54.24 is:

• $0.72 if paid by credit card
• $1.11 if paid by cash
• $1.21 if paid by check

Source: Page 188 of Daniel D. Garcia-Swartz, Robert W. Hahn, and Anne Layne-Farrar, The Move Toward a Cashless Society: A Closer Look at Payment System Economics, Review of Network Economics, Vol. 5, Issue 2.

According to MasterCard, in 2008 their average interchange rate was 1.85%, which is paid to the banks that issued the credit card.  On the flip side, issuing banks had credit losses as a percentage of transaction volume of 4%.  This indicates that issuing banks lost more money than they made in interchange. As the economy continues to struggle, these issuing banks will continue to see their losses climb.

Bottom line:  The merchant gets paid, even if the issuing bank does not.

Three Parts of Merchant Fees

Interchange is paid to the issuing bank.  There are approximately 200 Interchange rates, depending on the card type (e.g. debit card, corporate card). This is a variable that changes.

Dues and Assessment.  A question often presented is, “How does Visa and MasterCard make money if they don’t issue credit cards?”  Visa and MasterCard has Dues and Assessments, which is 11 basis points (.0011) they receive per transaction.

The acquiring bank charges a small fee for the processing of the transaction, ensuring the merchant gets their money, as well as providing monthly statements, 24/7 support and terminal troubleshooting.  This fee gets locked into your agreement.  For example, let’s use 30 basis points.

For a debit card merchant fees would be:

• Issuing bank:  1.03%
• Dues and Assessments .11% (Assessed by Visa or MasterCard)
• Acquiring Bank: .30%

Your total percentage fees for a $100 transaction would be $100 x (1.03%+.11%+.30%) or $100 x 1.43%, which equals $1.43.

The Dues and Assessment along with the Acquiring Bank fee would not change if you are using Interchange Plus pricing.  The only variable that changes is Interchange to the issuing bank.

Conclusion

Interchange is the lubricant to the gears in the transaction process.  Interchange rates are based on risk.  Debit cards have lower risk, corporate cards have higher risk.

Not accepting credit cards will have your customers buy from your competitors that do accept multiple forms of payment.

Consumers using credit cards buy more than customers with cash. With cash, you can only buy with what you have in your pocket.

Merchants accepting cash only have a higher risk of pilferage by employees.  There are some merchants that do NOT accept cash, simply for that reason.

The cost of managing cash and checks, which include bank fees, trips to the bank, etceteras, all have implicit costs attached to them.  Consider if you would an office manager that makes $16 per hour.  Each day the office manager puts together the cash and checks along with the deposit slips.  It takes them 15 minutes a day to accomplish this task. Each day they drive to the bank. It takes another 15 minutes in round trip drive time and dropping off the bank deposit.  If your employee does this task three days a week, 30 minutes per day, 50 weeks per year, they are spending 75 hours per year on non-value added work.  At $16 per hour, that’s $1,200 per year.  What else could they work on if they didn’t need to do these tasks?  Even if you still had to make trips to the bank, but could reduce the preparation time from 15 minutes to 5 minutes, that save you $400.

Understanding interchange makes you a more savvy merchant. It helps you understand when you are negotiating your merchant account what fees can be adjusted and which cannot.

If you would like more information concerning Visa MasterCard Interchange or establishing a merchant account, please call us at 877.577.3779.

Jon Perry

Jon Perry is the CEO of Merchant Services Inc. He is a speaker, writer and columnist for one the payment industry’s leading magazines.  You can connect with Jon on LinkedIn, follow him on Twitter or learn more about him on Facebook Profile or Facebook Business.

Understanding Visa MasterCard Interchange

EIRF – Electronic Interchange Reimbursement Fee – A Visa only Interchange Rate

EIRF – Electronic Interchange Reimbursement Fee, is a common, avoidable surcharge. Not all EIRFs can be avoided, but there are ways to minimize these costly charges. EIRF is actually an interchange surcharge that Visa adds for certain downgraded transactions. EIRF increases your discount rate between .45% and .76%, with the exact amount depending on your merchant type (e.g. restaurant, retail, lodging, etc).

EIRF – Electronic Interchange Reimbursement Fee, will be on your statement if you have Interchange Pricing. If you are on tiered pricing (Qualified, Mid Qualified and Non Qualified), it will be masked as non-qualifying.

With these four simple tips, you can avoid costly EIRF – Electronic Interchange Reimbursement Fee, downgrades by:

1. For commercial cards (corporate, business and purchase cards) you should always entered the sales tax as a separate field, and for MasterCard the sales tax and customer code.
2. Settling your batches nightly. If you take more than 48 hours to settle a transaction, it will default to EIRF.
3. Getting all the necessary AVS information. In e-commerce MOTO (Mail Order/Telephone Order) environments, it is vital to get all the required address verification and CVV2 codes and to ensure they are entered into your system correctly. Missing information results in EIRF charges. In a swiped environment, keying in the card and forcing its verification will penalize the merchant with EIRF.
4. Ensuring your final settled amount matches the authorization. If your original authorization and the final charge amount are not equal, the transactions being downgraded to EIRF. It’s recommended that merchants request a new authorization code if the dollar amount changes. For merchants that accept tips or process incremental authorizations, such as Food and Beverage, Restaurants or Hospitality, they are generally exempted from this requirement.

Implementing these four tips will help your organization avoid the costliest of Visa’s downgrades. The tips will also prevent many Standard Electronic Interchange Reimbursement Fee (SEIRF) interchange downgrades, which are charged by both MasterCard and Visa, and can add as much as 3% to your rate. We don’t profit from your downgrades nor do we have no financial ties to banks, so we only succeed when you do.

EIRF fees

Credit: 2.30% + $0.10
Debit: 1.75% + $0.20
Prepaid: 1.80% + $0.20

Retail EIRF – Electronic Interchange Reimbursement Fee

• Transaction is hand-keyed without AVS
• Batch was not closed until 72 hours after authorization
• Transactions approved via voice authorization and/or force
• Commercial card used without sales tax and customer card being entered
• Cardholder uses a World Elite, World Business, or World Elite Business Card

Restaurant EIRF – Electronic Interchange Reimbursement Fee

• Transaction is hand-keyed without AVS
• Batch was not closed until 72 hours after authorization
• Transactions approved via voice authorization and/or force
• Business/Corporate/Purchasing Card transaction
• Cardholder uses a World Elite, World Business, or World Elite Business Card

MOTO (Mail Order/Telephone Order) eCommerce EIRF – Electronic Interchange Reimbursement Fee

• Transaction is hand-keyed without AVS
• Batch not closed daily
• Transactions approved via voice authorization and/or force
• Commercial card used without sales tax and customer code being entered
• Cardholder uses a World Elite, World Business, or World Elite Business Card

Supermarkets EIRF – Electronic Interchange Reimbursement Fee

• Transaction is hand-keyed without AVS
• Batch was not closed until 72 hours after authorization
• Transactions approved via voice authorization and/or force
• Commercial card used without sales tax and customer card being entered
• Cardholder uses a World Elite, World Business, or World Elite Business Card

Lodging EIRF – Electronic Interchange Reimbursement Fee

• Check-in/out dates are missing
• Folio number is missing
• Settled amount is more than 15% of the authorization amount
• Settled more than 48 hours following Check-out (transaction) date
• Business/Corporate/Purchasing Card accepted
• Transaction approved via voice authorization
• Cardholder uses a World Elite, World Business, or World Elite Business Card

For more information about EIRF (Electronic Interchange Reimbursement Fee), PCI Compliance or merchant services, call us today at 817.857.3557 or toll free 877.577.3779.

EIRF – Electronic Interchange Reimbursement Fee